The Reserve Bank of India on Friday allowed banks to process and settle import and export related payments facilitated by online payment gateway service providers.Now, you can shop at foreign e-commerce sites such as Amazon and eBay or import goods including software using net banking, or domestic credit or debit card.

The Reserve Bank of India on Friday allowed banks to process and settle import and export related payments facilitated by online payment gateway service providers.

RBI has put a cap of $2,000 on import and $10,000 on export of goods and software as allowed under the foreign trade policy.

The banks will need to sign up for exporters and importers with global payment gateway providers such as PayPal, 2 checkout and Digital River through merchants.

Experts said this can be a big business but banks are wary of opening up the payment gateways because of the risks involved.

“It has been decided to permit AD Category-l banks to offer similar facility of payment for imports by entering into standing arrangements with the OPGSPs,” said RBI.

This could spell a boon for local businesses that use online payment gateway service providers as a primary payment mechanism.